DIGITIMES Research estimates that the global annual growth rate of large-size TFT LCD panel shipments is only 0.5%, mainly due to the decrease in demand for NB, display and tablet terminals in 2015 compared to 2014. However, due to the continued shipment of TV panels In the face of large-scale development, it is estimated that the average size of TV panels in 2015 is expected to increase by 1.2 inches to 40.5 inches, which will increase the overall demand for large-size TFT LCDs by 8.2%.
Among them, in the total increase in the demand for large-size panels, the contribution of TV panels is as high as 90%. Therefore, the demand for TV panels and the average size of shipments will be the key to the growth of demand for large-size panels in 2015.
On the supply side, global manufacturers' production capacity for large-size LCD panels increased by only 2.1% in 2014. The way panel manufacturers respond to excess demand is nothing more than increasing capacity utilization and optimizing production lines and processes to meet demand. In 2015, mainland manufacturers and Korean manufacturers continued to expand production capacity in the mainland, while Taiwanese manufacturers including Innolux and AUO also announced that they will expand large-size panel production capacity at the end of October. DIGITIMES Research expects that the annual growth rate of global large-size LCD panel production capacity will reach 5.9% in 2015, and the growth rate will reach a new high in recent years.
In summary, as the demand for TV panels accounts for 76% of the overall large-size LCD panels, as long as the average shipment size of TV panels can be maintained at 1.2-inch or higher, it is estimated that the overall supply and demand for large-size TFT LCD panels in 2015 will still remain. It can be maintained in a balanced state, which will help panel makers maintain interest rates comparable to the second half of 2014.